7. Title of thesis: Research on the impact of financial and non-financial factors on the selection and purchase in the low-income and middle-income housing segments.

8. Major: Finance and Banking

9. Code: 9 34 02 01

10. Scientific supervisor:

Assoc. Prof. Dr. Nguyen Hong Son;

Dr. Dinh Xuan Cuong

11. Summary of the thesis’ new findings:

First, in terms of theory, the thesis contributes to the systematization of the financial and non-financial factors influencing the housing purchase decision and housing satisfaction. This is an important foundation for researchers, investors, and banks to have a system of factors to conduct studies or assessment related to the housing selection decision and satisfaction. In addition, the thesis has clarified the concepts of social housing and lower-middle income commercial housing.

Second, the study analyzes and compares the impact of financial and non-financial factor groups on the housing purchase decision and satisfaction for customers purchasing social housing and lower-middle income commercial housing. Specifically, for the groups of factors influencing the housing selection decision, the study points out that financial issues and the location of the apartment building have a particularly important role in making the decision to choose the apartment and households purchasing social housing place higher importance on financial issues, but rate the influence of location lower than the group purchasing lower-middle income commercial housing. In the group of financial factors, survey results show that households purchasing social housing place higher importance on the price than households purchasing lower-middle income commercial housing. Payment terms and apartment service fees are also rated as quite important, and more important than issues of borrowing probabilities and interest rates.

The results of the study also show that, while the education variable has a significant influence on borrowing housing loans, the variables of occupation, age, household size and income are not correlated with the ability to borrow housing loans. This is in line with the situation in reality because the terms and conditions of the loans are quite clear.

In terms of housing satisfaction, results of analysis show that the level of satisfaction is highest for house buyers in Ho Chi Minh City, followed by Hanoi and Da Nang. In addition, households that received housing loans have a higher level of satisfaction with the housing compared to households that do not take out housing loans. Households living in social housing has a lower level of housing satisfaction than those in lower-middle income commercial housing.

Finally, the study considers a number of macro factors affecting house prices. Applying the error correction model to the quarterly data array of the two largest cities of Vietnam (Hanoi and Ho Chi Minh City) in the period of study from 2012 to 2016, the study indicates that current house prices are influenced by house prices of previous periods, GDP growth and government spending.

12. Applicability in practice:

The study results help to determine the impact of financial and non-financial factors on the selection of and satisfaction with low and middle-income housing in large cities of Vietnam;

The results of the study are expected to provide first empirical evidence for researchers, businesses, households, and managers to determine priority factors, thereby improving the satisfaction of customers and ensuring the sustainable development of the real estate market;

The study is also to provide some implications for banks, policy makers, and businesses investing in real estate.

13. Directions for future research:

(i) To assess the behavior of housing purchase or non-purchase, studies are required to have sample groups including people who have bought and have not been able to buy a home. However, this study limits the scope of research to financial and non-financial factors affecting the decision to select social housing and lower-middle income commercial housing for subjects who have been able to buy a home. Therefore, to have more in-depth analysis on the impact factors on the housing selection decision, future studies can expand the scope of research by collecting data of sample groups who are not only people who have bought a home but also including who have not.

(ii) The study limits its focus on considering the impact of financial factors on the selection of housing in terms of household behaviors. Other macro factors such as government spending, gross domestic product only serve the purpose of setting the context and foundation for this study. Future studies can be expanded by adding the impacts of macro factors on the housing selection decision and housing satisfaction of people.